Shares of Punjab National Bank jumped 1.1% to ₹116.30 after the bank disclosed a 12.8% rise in Q2 net profit to ₹5,532 crore, up from ₹4,903 crore a year earlier.
The lift was underpinned by a 10.8% YoY increase in core interest income, which climbed to ₹11,601 crore from ₹10,468 crore. Provisions collapsed to ₹97.27 crore from ₹541 crore in June, an 82% drop that helped clean up earnings, as per the bank’s quarterly filing.
Asset quality edged up on a sequential basis: gross NPA fell to 2.55% from 2.78% and net NPA tightened to 0.25% from 0.28%. Fresh slippages rose to ₹2,395 crore from ₹2,080 crore, signalling a potential uptick in credit risk, according to the bank’s statement.
Global advances grew 14.7% YoY to ₹13.41 lakh crore, while deposits rose 9.9% to ₹17.77 lakh crore, giving the bank a healthy funding base. The bank maintained its FY27 guidance, projecting net interest income growth of 7% and operating profit growth of 9‑10%, as shown in the management’s presentation.
Analysts see the Q2 results as a beat against the consensus of a 12% profit rise, but caution that rising slippages and a 4.34% cost of funds could dampen margins if RBI keeps rates high. The stock trades at a 12x forward P/E, compared to the banking sector average of 15x, making it a relatively attractive pick for value‑oriented investors.